Anyone Involved in Real Estate Investing?

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Anyone Involved in Real Estate Investing?

Postby Gina » Tue Jul 15, 2003 2:48 pm

I'm becoming interested in investing in real estate. Has anyone here had experience with such things? Here are some things that I'd like to learn more about: Buying and owning income producing properties (residential or commercial) Buying, selling, and financing deals with little or no cash out of pocket Any experience anyone has with buying and selling notes secured by second trust deeds Ways to generate monthly cash flow from real estate And, last but not least: Any experience anyone has with buying tax lien certificates. Thanks all! Gina
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Postby sgoldie » Tue Jul 15, 2003 7:51 pm

Gina, You are talking about something that is an entire business, ie, lots to know. In buying income property you can either do it directly or thru a broker. Three people will be your best friends 1) a real estate inspector (unless you are a contractor), 2) your banker, 3) your attorney. 'Due diligence' is an important aspect. You will want every detail about every expense that you will have in purchasing, and running the property in order to ensure profitability. Don't forget to figure in a %age of unoccupancy, repairs, maintenance, etc. You also want every detail about zoning legality, property legality (lead paint, asbestos, mold). Study the mortgage rates at various banks in your area for points, down payment, fixed or variable mortgages, and whether they are willing to finance non-owner occupied properties. It helps if you have a line of credit with them already. They may want to take a blanket mortgage, that is one umbrella mortgage on every piece you own. But, they will insist upon some equity and they will absolutely not take a second mortgage. Theirs is always a 'first' position which guarantees them seizure of the property upon default. Notes are second mortgages and they are unsecured. That means you are completely out of luck if their is no equity left over after the 'secured' bank is paid. You are relying on the soundness of the giver, that they have no unforseen circumstances that causes them to default, and that the value of the real estate in that location goes up. These things sound good on tv. More often than not those no down payment deals are people taking seconds for a property that is overpriced (thus the bank won't lend what they want), or that is in such rough shape that the banks won't finance them. You can do well finding places that need fixing up if you can do the work and then renting them. Tax implications are also very important in any business as they influence how life is lived. Keep a good accountant on board too. S
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Postby lifebydesign » Wed Jul 16, 2003 6:01 pm

Hi Gina Fancy that! For excellent advice and interesting discussions, visit www.johnburley.com and log into his discussion forums - you'll find pretty much everything you need to know there. I can also recommend Dolf De Roos "Real Estate Riches", an excellent book written in clear language that gives you a good insight into property investing, both commercial and residential. We have 5 rentals, so if you need advice, you know where to find me! Best regards Anne D
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Postby Gina » Wed Jul 16, 2003 11:56 pm

sgoldie and lifebydesign (Anne) -- Thank you so much! It's a fascinating field. You've given me some good ideas to pursue and many things to think about and check out. Thanks again and best to you both, Gina
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Re: Anyone Involved in Real Estate Investing?

Postby Marhsal_01 » Mon Dec 09, 2013 10:09 pm

Real estate business is full of responsibilities. It not only involves buying and selling homes, but involves a lot more. Before dealing with a property, you need to get property inspected property so that buyer do not complaint back or bully on you or shows distrust on you.
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